Hicks try hedge funds to complete control of Liverpool

Tom Hicks has reportedly been looking into hedge funs as a way to complete his takeover of English Liverpool.

The shiver sent up the spines of Liverpool supporters is likely due to the fact that Malcolm Glazer solidified his control at Manchester United with hedge funds. Hicks and Glazer are not far off on the unpopularity scale amongst supporters.

Hicks has been using Merrill Lynch for help in his struggling finances. One hedge fund already rejected a Hicks approach. Hicks likely won't get any help from Och-Ziff — if he hasn't already tried — because that has Dubai International Capital (DIC) as an investor.

DIC has been trying to get Hicks to sell his share, and stop blocking co-owner George Gillett from selling to DIC.

Hicks will need at least GBP 200 million to buy out co-owner Gillett. He said he would use a variety of investors to buy out Gillett.

If Hicks bought out Gillett and, as he promised, cover the club's current debt and build the promised new stadium, it would cost him in the area of GBP 700 million.

The matter is whether Hicks can hold out. It would seem, given the credit crunch, that DIC has the resources to wait out Hicks, and see if the financial pressure forces him to sell and end his block of Gillett's potential sale to DIC.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.